South Korea Retains Virtual Asset Tax in 2026 Reform Plan

Key Point

South Korea’s Ministry of Economy and Finance finalized the 2026 Tax System Revision Bill without a clause to delay virtual asset taxation. If the National Assembly passes the bill, gains from virtual asset transactions above 2.5 million KRW will be taxed at 22% starting next year. The first filing period is set for May 2028. Opposition parties have proposed a bill to abolish the tax.

Market Sentiment

Cautiously Bearish, Regulatory-driven.

Reason: The retained tax arrangement could reduce after-tax trading gains if the National Assembly passes the bill.

Similar Past Cases

This type of tax-policy step typically affects compliance planning before it changes spot liquidity. The current arrangement still depends on National Assembly passage, so the market effect may remain limited until the legislative path is clear.

Ripple Effect

Tax clarity can shift trading behavior through after-tax return expectations, but the effect may stay contained until the National Assembly acts.

Opportunities & Risks

Opportunities: Investors can monitor whether the National Assembly passes the bill, because passage would make tax timing more concrete for domestic trading plans.

Risks: Investors can monitor any abolition effort from opposition parties, because conflicting legislative paths could keep compliance expectations uncertain.